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less than 50 cents worth of silver in them, amounting to $26,059,729, in the twenty-eight months between November 1, 1893, when it was repealed, and January 1, 1896, over and above the Treasury notes that would have been issued under that clause had it not been repealed.

Had a Secretary of the Treasury availed himself of his right under the Bland-Allison bill to have bought his $4,000,000 worth of silver a month, there would have been $128,336,514 of less than half value put in circulation more than of Treasury notes that would have been put in circulation had the purchase clause of the silver law of July 14, 1890, not been repealed.

While the enactment of the silver law of July 14, 1890, can not be justified upon any ground of sound economics, it was one of the wisest measures that sound statesmanship has accomplished in the last twenty years, under the circumstances under which it was passed. It was a step absolutely necessary to try the experiment of buying and using the American product of silver, which the people were determined to use in some form, and in securing the repeal of the hundredfold more vicious Bland-Allison law, which a determined effort was made to reenact in the place of the bill repealing the purchase clause of the Sherman law.

APPENDIX T.

JUGGLING WITH FIGURES.

(Circular of a New York bond brokor.) From 10 to 12 per % per annum in circulation. OFFICE OF

&
DEALERS IN UNITED STATES BONDS,

NEW YORK, March 19, 1896. To the National Banks :

The opportunity now exists whereby from 10 to 12 per cent can be realized on every dollar invested in circulation based on United States fives due in 1904, or United States fours due in 1925. This is an opportunity which the national banks should take advantage of without hesitation, as in no other possible way can such rates of interest be secured absolutely without risk. The supply of bonds at present quotations is limited, and it therefore behooves the banks to act promptly in order to secure the full advantage of the transaction. We append comparative table showing results of circulation based on fours and fives, with money at 6 and 4

We are prepared to name rates at which we will supply any issue of Governments and carry 90 per cent of the face value until circulation can be prepared.

Very truly, (See pages 70 to 74.)

per cent.

UNITED STATES FIVES, 1904, AT 1134 PER CENT.

Samo system of figuring applied to the Walker bill, H. R. 171.

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(Money at 4 per cent ander Walker bill (H. R. 171).) $100,000 5 por cent bonds would yield per annam..

$5,000.00 Investing $112,875 in buying legal-tonder notes $90,000 circulation loaned at 4 per cent would yield per annum

3, 600.00 Treasurer sets aside 10 per cent in gold for current redemption fund

Bank then issues against its assets reserve notes..

Total currency, eto..........
Less sinking fund to retire premium on bonds, to bo set aside each
year, and improved at 4 per cent

Profit on $237,037.50 at 4 per cent
Less expenses

Deduct:
2, 423.00 Interest on $112,875 invested 4 per cent

$4,555.00
Tax on $112,875 reserve notes $ per cent.

225. 75
Net income with circulation, per annum.
6, 177.00 Expenses.....

100.00
Net income without circulation, by loaning net cost of bonds, $112, 875
at 4 per cent, per annum ...

Increased net cash income
Increased income, per annum

1, 662.00 On an investment of $0,000.00. 1131 less 6 per cent accrued interest=112net.

The way profits are made to appear in the figures of the broker.

(Money at 4 por cont.)

8, 600.00
Loss tax on circulation, 1 per cent

$900.00

1, 423.00

100.00

4,515.00

Percentage of income realized on net cash investment. $100,000 5 per cent bonds would cost.

.$112, 875.00 Loss circulation issued on same ..

90,000.00 Net cash investment.

22, 875.00 Income: Interest on $100,000 bonds

5,000.00 Less tax, sinking tund, and expenses

2, 423.00 Net cash income.

2. 577.00 Or 113 per cent on investment of.

22, 875.00

4, 880.75
4, 600.75

.......

UNITED STATES FOURS, 1925, AT 117 PER CENT.

.......

(Money at 4 per cent.)

(Money at 4 por cent under Walker bill (H. R. 171).] $100,000 4 per cent bonds would yield per annum. $4,000.00 Invosting $116,500 in buying legal-tender notes.

$116, 500.00 $90,000 circulation loaned at 4 per cent would yield per annum.

3, 600.00 Treasurer sets aside 10 per cent in gold for current redemption fund.. 11, 650.00
Bank then issues against its assets reserve notes.

116,500.00
7, 600.00
Long tax on circulation, 1 per cent.

$900.00
Total currenoy, oto.

244, 650.00
Less sinking fund to retiro premium on bonds, to be set aside each
year, and improved at 4 per cent..

313.00
Profit on $244,650 at 4 por cont

9,786.00 Loos expenses.

100.00

Deduct: 1, 313.00 Interest on $116,500 invested, 4 per cont

$4, 660.00
Tax on $116,500 reserve notes, & per cent.....

233.00
Net income with circulation, per annum..
6, 287.00 Expenses

100.00
Net income without circulation, by loaning not cost of bonds,

4, 993.00
$116,500 at 4 per cent per annum...

4, 660.00
Increased net cash income.

4, 793.00 Increased income, per annum.

1, 627.00 On an investment of $0, 000.00. 117 less $ per cent accrued interest=116) net.

Percentage of income realized on net cash investment. $100,000 4 per cent bonds would cost.

$116, 500.00 Less circulation issued on samo.....

90, 000.00
Net cash investment..

26,500.00
Income:
Interest on $100,000 bonds.

4,000.00
Loss tax, sinking fund, and expensos....

1, 313.00
Net cash income....

2, 687.00 Or 104 per cent on investment of.

26,500.00 Calculations are made as of March 18, 1896.

UNITED STATES FIVES, 1904, AT 1134 PER CENT.

The way profits are made to appear in the figures of the broker.

Samo system of figuring applied to the Walker bill, H. R. 171.

..

(Money at 6 per cont.)

[Money at 6 per cent under Walker bil (H. R. 171).]
$100,000 5 per cent bonds would yield per annum
$5,000.00 Investing $112,875 in buying legal tonder-notes

$112, 875.00
$90,000 ciroulation loaned at 6 per cent would yield per annum

5, 400.00 Treasurer sets aside 10 per cent in gold for current redemption fund...... 11, 287.50
Bank thon issues against its assets reserve notes

112, 875.00
10,400.00
Less tax on circulation, 1 per cent

$900.00
Total currency, eto...

237, 037.50 Less sinking fund to retire premium on bonds, to be set aside each year and improved at 6 per cent........

.. 1, 315.00 Profit on $237,037.50 at 6 per cont.....

14, 222. 25 Löss expenses

100.00

Deduct:
2, 315.00 Interest on $112,875 invested, 6 per cent.

$6, 772. 50
Tax on $112,875 reserve notes, & per cent..

225. 75 Net income with circulation, per annum. 8, 085.00 Expensos.....

100.00 Net income without circulation, by loaning net cost of bonds,

7,098.25
$112,875 at 6 per cent per annum

6, 773.00
Increased net cash income

6, 124.00
Increased income, per annum..

1, 312.00 On an investment of $0,000.00. 1131 less per cent accrued interest = 112) net.

Percentage of income realized on net cash investment. $100,000 5 per cent bonds would cost

$112, 875.00 Less circulation issued on same..

90, 000.00

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UNITED STATES FOURS, 1025, AT 117 PER CENT.

..............

(Monoy at 0 por cont.)

(Money at 6 per cont under Walker bill (H. R. 171).] $100,000 4 per cent bonds would yield per annum $4,000.00 Investing $116,600 in buying legal-tender notes

$116,500.00
$90,000 circulation loaned at 6 per cont would yield per annum ........... 5, 400.00 Treasurer sets aside 10 per cent in gold for current redemption fund...

11, 650.00
Bank then issues against its assets
roserve notes

116,500.00
9, 400.00
Less tax on circulation, 1 per cent..

$900.00
Total curronoy, eto........

244, 650.00 Loss sinking fund to retire premium on bonds, to be set aside each year and improved at 6 por cont...

226.00 Profit on $244,650 at 6 per cont.

14, 679.00 Less expenses ....

100.00

Deduct: 1, 226.00 Interest on $116,500 invested 6 per cent

$6, 990.00
Tax on $116,500 reserve notes per cont.......

233.00
Net income with circulation, per annum
8, 174.00 Expenses..

100.00
Net income without circulation, by loaning not cost of bonds, $116,500

7, 323.00
at 6 per cent per annum..

6, 990.00
Increased net cash income

7, 356.00 Increased income, per annum

1, 184. 00 On an investment of $0,000.00 117 less 5 per cent accrued interest=116% net.

Percentage of income realized on net cash investment. $100,000 4 per cent bonds would cost.

$116,500.00
Loss circulation issued on same ......

90,000.00
Net cash investment..

26,500.00
Income:
Interest on $100,000 bonds

4,000.00
Less tax, sinking fund, and expenses.

1, 226.00
Net cash income

2,774.00
Or 10.47 per cent on investment of.

26,500.00 Calculations are made as of March 18, 1896.

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